Kuala lumpur: The Federation of Malaysian Manufacturers (FMM) hopes the government will not introduce additional taxes on the manufacturing industry during the tabling of Budget 2026. Its president Tan Sri Soh Thian Lai emphasized that avoiding further taxation could provide necessary relief and allow businesses to concentrate on their operations amidst increasing operational costs and global uncertainties.

According to BERNAMA News Agency, Soh Thian Lai expressed that retaining money within the economic system is crucial. He cautioned that continuous taxation could hinder the industry’s profitability and urged the government to allow businesses to thrive without the burden of additional taxes. The comments were made during the release of the FMM Business Conditions Survey for the first half of 2025.

Soh further emphasized the need for the government to understand the requirements of industry players and create an environment that supports business operations while ensuring sustainable revenue generation for the sector. Additionally, he proposed the establishment of an ASEAN supply chain coordination council to enhance and connect regional supply chains.

The proposed council aims to link the entire ASEAN supply chain, creating opportunities for increased revenue generation. Soh highlighted the importance of a coordination network that would enable ASEAN countries to collaborate and maximize their potential through reshoring or nearshoring initiatives.

He also noted that with support from ASEAN governments, the private sector could significantly enhance its capabilities, particularly in business-to-business transactions. Malaysia, for instance, could collaborate with Thailand and Vietnam to source intermediate goods, thereby strengthening the supply chain system.

The federation is scheduled to hold its first meeting with the ASEAN Business Advisory Council (ASEAN-BAC) to deliberate on the proposed idea on September 23, 2025.